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Change Management – An Important Step for Successful ERP Implementation

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Change Management - An Important Step for Successful ERP Implementation

Change might be the opposite of consistency, but the only thing consistent in every organization today is change. However, most employees resist change either because it asks them to come out of the comfort zone they have been enjoying or they fear already tough things getting worse for them.

ERP implementation is a huge change in operational process. Employees may resist this change as well. In such scenarios, you need to communicate the very basic thing first, i.e. Change is for Good” – change (ERP implementation) is actually beneficial to both the organization and employees in many ways. So how do you make sure your employees adapt to this change? Simple, through change management!

According to the “2014 ERP Report: Organizational Change Management” of Panorama Consulting Solutions, change management is one of the most overlooked success factors in an ERP project. It may be because organizations do not know how important change management is for the success of an ERP implementation. So in this blog, we will know a few benefits of change management for an organization.

Ready to/for Change

Change management brings clarity to why the change is necessary and how it will benefit. When employees understand that change is for the good, they will be ready to adapt to the change. In ERP implementation, your employees must understand why it is important so that they become ready to adapt to it. If employees are ready for the change, they will be better prepared for the challenges that may arise during and after the change. So the risk of failing is reduced considerably. When employees are ready for the change, they do not underestimate the power of training to tackle it. 

Manage Costs

According to Panorama Consulting, 74% of ERP projects run over budget. When employees understand the importance of training, your training investment will not go in vain. Also, change management helps you reduce the cost of change by allowing you to better manage your budget. When you manage to put the right people in the right place, you will reduce inefficiencies and avoid exceeding the budget.

Increased ROI

A change that is well managed results in real improvements. When your ERP budget is well managed and the end-users are well trained, your people and processes tend to yield positive returns from the investments you made in the ERP implementation.

Good Organizational Relationships

You know that your change affects both the organization and its employees. With change management, you try to deliver this message to your employees. When your employees see that you have taken the time to consider their pain during the ERP implementation, they are more likely to perform better and get more involved. They feel supported and will have the information they need to tackle the change.

Managing Everyday Work

When an organization implements a change, they cannot stop working until the transition is complete. They need to implement the ERP without harming their current operations. Change management helps you gradually adapt to the change while you still manage everyday work.

These are a few benefits of change management for an organization. Hope you find this post helpful. Please share your thoughts through your comments.

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